Co Cork hotel sells to Scottish company for well over guide price

Ownership of yet another Irish hotel has passed to an overseas company. A Scottish hotelier has bought the Carlton Hotel and Spa close to the holiday town of Kinsale, Co Cork, for marginally more than €6 million, which is well ahead of the guide price of €4.25 million.

The 70-bedroom hotel was developed in a stunning waterfront setting in 2006 at a cost of almost €25 million by a Cork-based consortium known as Gable Holdings.

Although it had trading difficulties before it was put into receivership in September 2012 by Bank of Scotland (Ireland) and Nama, it still managed to turn a profit of €500,000 last year largely because of the strong management of BDL Hotels.

A similar change of fortune is also being experienced by several other holiday hotels, and while the ongoing recovery is too late to halt their sale, it should make it easier to attract buyers.

The €6 million sale due to be announced this week by Denis O’Donoghue and Chris O’Callaghan of Savills works out at a value of €85,714 per bedroom without taking into account the 19 three-bedroom holiday houses on the grounds.

Marinas

This compares with a value of €134,000 per bedroom for the River

Lee Hotel

in Cork which sold for €24.5 million; €103,000 per bedroom for the Oriel House Hotel in Ballincollig, which made €8 million; €96,000 per bedroom for Whites of Wexford which made €15.1 million; and €85,000 per bedroom for the

Clayton Hotel

in Galway, which fetched €16.5 million.

The Carlton Hotel was built on the site of the former Rathmore House and while few remnants of the estate remain, the site extends to 89 acres, predominantly covered by deciduous woodlands and some grassland areas. The hotel has views over Oysterhaven Bay which is used by sailing boats from the three marinas in Kinsale.

The pick-up in business at the Carlton is largely due to its success as a wedding venue. Last year, it catered for 99 wedding receptions, a figure likely to be exceeded in 2015.

The 19 holiday houses are particularly popular with families.